2 weeks ago, word got out that Toys R Us had massive debts (roughly US$5 billion) and was in hot water.
Late yesterday (Monday, 18th September), it was confirmed that Toys R Us Inc, the largest US toy store chain, had officially filed for bankruptcy. This comes just as the toy retailer is gearing up for the upcoming holiday season.
So will the Toys R Us outlets in our country be affected? New Straits Times recently reached out to a few employees in Malaysia on the current situation. “The rumours about store closure have been going on for weeks. Since there is still no official notice, I will just continue my work as usual,” store supervisor Qeela was quoted as saying.
“I think these are just rumours as we have not been notified. If it’s true, it would be bad news for us. We would have to find new jobs. I will wait until the management gives us notice. It’s not fair for them to just sit on the news and not inform the employees,” another employee named Linda commented. She also added that there are at least 10 workers in each Toys R Us store.
Despite the confirmation, Toys R Us Asia has released a statement clarifying that the company is a separate legal entity and is financially independent from Toys R Us Inc. “Toys R Us (Asia) is open for business and continuing to serve our customers as we always do. We are a financially robust and self-funding retail operation, which continues to significantly grow and invest in this region,” said Toys R Us Asia president Andre Javes.